Business
Search Minerals Closes Debenture Financing and Shares for Debt Transaction
VANCOUVER, British Columbia, July 09, 2020 (GLOBE NEWSWIRE) -- Search Minerals Inc. (TSXV: SMY) (“Search” or the “Company”) is pleased to announce that the Comp
About this update from Search Minerals Inc.
[{"type":"text","content":" VANCOUVER, British Columbia, July 09, 2020 (GLOBE NEWSWIRE) -- Search Minerals Inc. (TSXV: SMY) (“Search” or the “Company”) is pleased to announce that the Company closed its non-brokered secured convertible debenture (“Debenture”) private placement (the “Private Placement”) for gross proceeds of $500,000, as initially announced on June 10, 2020. The Debenture has a maturity date of one year from the date of issuance and will bear simple interest at a rate of 15% per annum, calculated and paid semi-annually. The Debenture will be convertible into units (“Units”) of the Company at a conversion price of $0.05 per Unit, in accordance with the terms set forth in the certificate representing the Debenture. Each Unit will be comprised of one common share of the Company (a “Share”) and one common share purchase warrant (a “Warrant”), with each Warrant entitling the holder thereof to acquire one additional Share (a “Warrant Share”) at an exercise price of $0.05 per Warrant Share for a period of five years from the date of conversion of the Debenture. The Debenture will be secured by a general security agreement over all of the Company’s assets and a share pledge agreement pursuant to which the Company has pledged all the shares of its wholly owned subsidiary, Alterra Resources Inc. Greg Andrews, President and CEO states: “The proceeds from the Private Placement allow Search to continue to advance our Critical Rare Earth District in SE Labrador. Our exploration team has been working in the area since early June 2020. An extensive channel sample program at AWESOME FOX is nearing completion, and our team anticipates initiating similar programs on our SILVER FOX and FOX MEADOW prospects thereafter.” Additional Andrews adds; “Search continues to evaluate various proven and new REE separation technologies to complete our entrance into the North American rare earth supply chain through producing individual rare earth oxides. Using our proprietary Direct Extraction Process, we have the option to produce either a 58% REO mixed rare earth carbonate or a 99% REO mixed rare earth oxide concentrate as input to the separation plant.” In addition, the Company has closed a shares for debt transaction (the “Shares for Debt Transaction”) to settle the interest payment due to InCoR Holdings PLC., as at May 31, 2020, in...